Richards Bay buyers capitalise on interest rate savings
Category Expert Insight
Buyers in the Richards Bay area are taking advantage of the interest rate savings and the market is picking up steam as we progress during Level 3 of the Lockdown, says Elaine Chetty, Seeff’s licensee for the area.
For buyers, the historically low interest rate presents a saving of almost 30% and it is especially a great time for first time buyers. In fact, says Ms Chetty, more than half of our buyers are first time buyers.
She expects the market boost and favourable buyer’s market conditions to give the Richards Bay market the edge to bounce back quicker than many other areas.
Affordability is a big driver of the market, she says further. Lightstone shows that the average sectional title price stands at R839 000, but you can find entry level apartments from around R385 000. Family houses sell from around R1,2 million. There is also plenty to choose from for upper income buyers, while still offering excellent value.
The primary market in Richards Bay is in the sub-R1,6 million price range. The most popular price band currently is the R1,3 million to R1,5 million range.
Buyers are certainly willing at present, she says. We are getting plenty of enquiries and converting these into sales. During the Lockdown period, we already experienced excellent interest, but was hampered by the restriction on viewings. The ability to now view under Level 3 has been a big boost for the market, she says further.
Sellers are still holding out on their prices adopting a 'wait and see' approach. We anticipate more sellers getting into distress due to the economic pressure of the Covid-19 Lockdown. Many sellers will be looking to downsize for financial reasons while some will unfortunately have to sell if they have lost their employment.
Richards Bay also has a busy rental market and Ms Chetty expects a lot activity around people looking to downgrade and some upgrading. We also expect and influx of new tenants who will seek refuge in rental accommodation until their financial position improves.
While the market will no doubt come under pressure because of the economic fall-out of the Covid-19 Lockdown, we believe that it is offering plenty of activity for sellers, buyers, landlords and tenants.
Contact Seeff Richards Bay on 035 789 0490/1
Photograph enclosed:
Richards Bay – R4.18 million for two 3-bed properties on one stand which come with modern finishes, spacious rooms, a swimming pool and more
https://www.seeff.com/results/residential/for-sale/richards-bay/meer-en-see/house/64018/
Author: Gina Meintjes
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